corporate presentation...2021/02/06 · 3 leading hospital operator about 750 beds under operation...
TRANSCRIPT
February 2021
Corporate Presentation
1
Disclaimer
IMPORTANT: The information contained herein is preliminary and subject to change without notice, its accuracy is not guaranteed, has not been independently verified and may not
contain all material information concerning Vincom Retail Joint Stock Company (the “Company”) and its subsidiaries (the “Group”). You should not rely upon it or use it to form the
basis for any investment decision or commitment whatsoever.
None of the Company, its shareholders, or any of their respective affiliates, directors, officers, employees, agents, advisers or any other person makes any representation or warranty
(express or implied) or accepts any responsibility or liability for the accuracy or completeness of this presentation or any or all of the information in this presentation or otherwise made
available. It is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the financial or trading position or prospects
of the Group. No part of this presentation shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Further, nothing in this presentation
should be construed as constituting legal, business, tax or financial advice. You should conduct such independent investigations and analysis of the Group as you deem necessary or
appropriate in order to make an independent determination of the suitability, merits and consequences of investment in the Company.
This presentation contains “forward-looking statements”. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the
Company’s control and all of which are based on management’s current beliefs and expectations about future events. Forward-looking statements are sometimes identified by the use
of forward-looking terminology such as “believe”, “expects”, “may”, “will”, “could”, “should”, “shall”, “risk”, “intends”, “estimates”, “aims”, “targets”, “plans”, “predicts”, “continues”,
“assumes”, “positioned” or “anticipates” or the negative thereof, other variations thereon or comparable terminology. These forward-looking statements include all matters that are not
historical facts. Forward-looking statements are not guarantees of future performance. These forward-looking statements speak only as at the date of this presentation, and none of
the company, its shareholders, or any of their respective affiliates, directors, officers, employees, agents, advisers or any other person undertakes to update or revise any forward-
looking statements as a result of new information or to reflect future events or circumstances.
2
Vincom Retail (“VRE”) is the largest and fastest growing retail developer, owner
and operator in Vietnam
Key investment highlights are as follows:
Market leader in terms of the shopping mall GFA in Vietnam’s major cities…
…the direct proxy for consumer demand
Proven Track Record of
Highly Scalable Platform
with Strong Operating
Performance
Vietnam Economy
Remains Resilient
Amidst Covid-19
Outbreak
Ability to Leverage the
Best-in-Country
Vingroup Ecosystem
Modern Retail Set to
Take Off
Institutional Level
Corporate Governance
Largest and Most
Dominant Retail Platform
The Dominant and Fastest Growing Retail Platform in Vietnam
Executive Summary
2
3
Leading
hospital
operator
About 750
beds under
operation
7 full-
service
general
hospitals
and 5
clinics
Leading
hospitality
operator in
Vietnam
Approx.
17,500
rooms
owned &
managed
Premium
and large
scale real
estate
developer
Largest in
Vietnam
27,700
units
presold(3)
(Contracted
sales of
VND 64
trillion(4))
Leading
private
school
operator
About
29,300
students
registered
at 35
facilities(5)
Vingroup & Vincom Retail: Market Leaders In Vietnam
~28% NLA leased to internal
and affiliated tenants(2)
1.7 mnRetail GFA
(sqm)
80Operational
Malls
Hanoi
Ho Chi Minh City
Vincom Retail is the Ultimate Consumer Play for Vietnam
Note:
(1) Refers to Vinhomes’ landbank (2) MSN-Vincommerce is an affiliated tenant (3) For FY2020, estimated pre-sale under SPAs and pre-sale bookings under deposits, including bulk sales deposits (4) Include retail and bulk sales value
(5) (6) (7) (8) (9) As of 31 Dec 2020
Vincom RetailA Key Subsidiary of
Vingroup JSC
Largest Retail
Developer, Owner
and Operator in
Vietnam
Vincom Retail
VinID: ~11 mn Members, Largest Loyalty Program in Vietnam(5)
Largest Listed Company in Vietnam
Largest Real Estate Developer in Vietnam
Vincom Mega Mall
No. of Malls: 3
Retail GFA: 444,098 sqm
(24% total)
Vincom Plaza
No. of Malls: 54
Retail GFA: 857,517 sqm
(53% total)
Vincom CenterNo. of Malls: 7
Retail GFA: 280,026 sqm
(18% total)
Vincom+
No. of Malls: 15
Retail GFA: 71,936 sqm
(5% total)
Unique Multi format Model
(8)
(9)
c. 168 mm sqm of Landbank(1)
VinFast:
Flagship automobile and e-
motorcycle showrooms
Vinhomes:
Vietnam’s largest real estate
developer
Vinschool:
Leading private school operator
First
Vietnam-
ese smart
and green
vehicle
manufactu-
rer
76,900 cars
and electric
motor-
cycles(6)
Top 4
smartphone
producer in
Vietnam
1.9 million
smart-
phones
sold(7)
VinMart:
Vietnam’s largest modern grocery
retail chain by presence
Ecosystem of Complementary Businesses
Residential Hospitality Healthcare Education Automobile Smartphone
4
Emergence Of Vincom Retail As A Clear Market Leader
Early Years & FormationEstablishing Platform
For Growth
Accelerating Growth With
Dominant Market Share
2017 Listed on HOSE in
November
H&M opened 2 stores
in Hanoi and Ho Chi
Minh City
Zara opened first store
in Hanoi
Key tenants added:
Inditex brands
(Stradivarius, Massimo
Dutti, Pull & Bear),
H&M and Old Navy
2014 First Vincom
shopping mall
outside Hanoi &
HCMC
− VCP Ha Long
First Robins
department store
in Vietnam
opened in Royal
City in April 2014
17 Years of Operating Experience Achieving ~1.7 mm sqm of Retail GFA (~35x Increase Since 2004)
2015 Vincom Mega
Mall Thao Dien
launched
US$100mm
follow-on
investment
10 new Vincom
shopping malls &
Acquisition of 5
Maximark malls
2016 10 new Vincom
shopping malls
Introduction
of Vincom+ format
First Zara flagship
store in Vietnam
opened at Vincom
Center Dong Khoi in
HCMC
c.US$390mm Vingroup
follow on investment
2004 - 2013 Royal City launched
Times City launched
US$200 million
investment
Best Retail
Developer in
Vietnam” by
Euromoney in 2012
Note: As of 31 Dec 2020
Leasing revenue is based on Vietnam Accounting Standard (VAS) Audited Consolidated Financial Statements for respective years and Consolidated Financial Statements for 2020
(1) Leasing revenue took into account the impact of Vincom Retail’s supporting package to tenants impacted by Covid-19 in 2020, totaling VND 865bn
2018 Launched 20
shopping malls,
including Landmark
81
Signed leasing
contracts for
approximately
191,000 sqm NLA
and over 1,200
advertising contracts
4
2019-2020 Launched 13 (2019)
and 1 (2020)
shopping malls and
expanded our
international tenant
portfolio across key
malls (Uniqlo,
Decathlon, CGV,
H&M, Mango, Muji,
Pizza 4P’s, Haidilao)
Pioneer in
experiential
retail-tainment in
Vietnam
42 93467 499
851 1,023 1,1731,448 1,598 1,654
1,927
2,427
3,805
4,455
5,506
7,017
6,008
-20
980
1980
2980
3980
4980
5980
6980
7980
2004 2010 2013 2014 2015 2016 2017 2018 2019 2020
1 2 5 6 23 31 46 66 No. of
malls
Vincom Center
Ba TrieuVincom Center
Dong Khoi
1st Retail Mall
in Vietnam
1st Integrated
Project in
Vietnam
Leasing Revenue (VND bn)
Investment by
Warburg
Pincus
8079
2014 – 20 CAGR:
Leasing revenue: 20.1%
GFA: 22.0%
Retail GFA (‘000 sqm)
IPO and
listed on
HOSE
(1)
55
Retail Consolidates Around The Dominant Local Landlord
Global examples clearly demonstrate retail consolidation around the
dominant local landlord
Significant parallels seen between VRE and regional retail leaders
Vietnam's current position at an early, higher growth stage of the retail
cycle translates to a stronger growth profile and a more dominant market
share
Vincom Retail
Vietnam’s largest retail developer, owner and
operator
SM Prime
Philippines’ largest retail real estate developer
Central Pattana
Thailand’s largest shopping mall developer arm of
Central Group
CapitaLand Integrated Commercial Trust
Largest proxy for Singapore’s commercial real estate
Vietnam
Thailand
Singapore
Indonesia
Philippines
1.0
2016 2020
GFA (mm sqm)
2.2
9.8
2007 2019 2007 2019
GFA (mm sqm)(3) Market Share by GFA(2)
5.6%
15.4%
2011 2020
Market Share by NLA(3)
Source: Company filings, Colliers, Statista, Urban Redevelopment Authority, Savills, Urbis.
1. Based on Central Pattana’s retail NLA in Bangkok Metropolitan Area and total shopping mall NLA in Bangkok Metropolitan Area.
2. Based on SM Prime’s retail GFA in Metro Manila and total retail GFA in Metro Manila.
3. Based on retail floor space supply in Singapore (2009-2024), extracted from Capitaland Mall Trust (CMT) Annual Report 2019
4. Based on PT. Pakuwon Jati’s retail NLA as of Dec-2012 and 3Q 2020 vs. shopping mall NLA of Jakarta
10.7mm7.8mm
Total Market Size (NLA sq. ft)(3)
67.4mm
Total Market Size (GFA sqm)(2)
2013 2020
15%20%
2013 2020
GFA (mm sqm)(1) Market Share by GFA(1)
Total Market Size (GFA sqm)(1)
18.9mm5.6mm
0.94.7
28%50%
1.7
3.310.4
2011 2020
NLA (mm sq. ft)
58.9mm
PT. Pakuwon Jati
Indonesia’s largest mall owner and operator
Market Share by NLA(4)
Total Market Size (NLA sqm)(4)
~2.5mm ~3.2mm(5)
0.30.7
2012 2020
NLA (mm sqm)
13.3%20.4%
2012 2020
Key Investment Highlights
7
Vietnam’s Economy Remains Resilient Amidst Covid-19 Outbreak
‒ Vietnam On A Rebound – The Brightest Spot In SEA’s Economies
‒ Clearer Signs Of A Speedy Recovery; Ready For A “New Normal”
Huge Potential for Further Expansion in Vietnam’s Retail Space
Modern Retail Set to Take Off
Only Retail Platform With Nationwide Access
Metro and Bus Infrastructure To Accelerate Retail Mall Footfall
1
2
Multi Format Model Covers a Larger Market Opportunity
Solidified Position as Dominant Retail Platform in Vietnam
Ability to Leverage the Best-in-Country Vingroup Ecosystem4
Institutional Level Corporate Governance
3
5
Key Investment Highlights
8
Source: Bloomberg GDP consensus, GSO, CEIC and BMI
Highest Domestic Consumption Growth
Country In ASEAN during 2020-2021
The Only Country In ASEAN Which Had Positive GDP Growth In 2020E And The Strongest GDP Growth Forecast in 2021E
Real GDP growth (%)
Vietnam GDP to continue growing in 2021 led by a recovery in domestic consumption, resilient FDI due to supply chain shift and public investment
Free trade agreements such as CPTPP, EVFTA and RCEP to
boost Vietnam's foreign trade
Highest Level Of Public Investment Spending
As % Of GDP To Support Local Economy
Public investment as % of GDP (2021 Target)
1 Vietnam to Become The New Center of The
Global Manufacturing Supply Chain2 3
14.515.8
17.519.1
20.4 20.0
2015 2016 2017 2018 2019 2020
Implemented FDI has been resilient despite Covid-19
Increasing immigration and expansion of global leaders into
Vietnam
(US$bn)
Domestic consumption growth (%)
Public investment expected to continue the elevated trend
in 1H21 with accommodative monetary policy
(9.5)
(7.2) (5.8) (5.0)
(1.1)
2.9
7.6
4.2 5.6
6.7 4.9
7.7 6.6
4.9 4.1
5.1 5.3 6.9
Philippines Thailand Singapore Malaysia Indonesia Vietnam
2020 2021 2022
2.4
3.6 4.0 4.1
5.7
6.8
-4.7
-3.6
-2.1
0.5 0.5
4.44.6
8.28.8
7.0
3.0
10.6
2020 2021
Vietnam On A Rebound - The Brightest Spot In SEA’s Economies 1
9
5.72.0
1.4
-0.14-2.9
-8.4-10.0
-15.7
-24.4
6.5
1.5 1.41.8
4.0 3.7
7.010.0
12.0
2020 2021F
Source: Google Mobility Index; CBRE Research, eMarketer
(80)%
(70)%
(60)%
(50)%
(40)%
(30)%
(20)%
(10)%
0%
10%
Vietnam Hong Kong Korea
Thailand Singapore
Mobility is gradually returning to pre-Covid levels Daily Community Cases In Vietnam Comparison of Social Distancing Measures
Country
First wave of
infections (1H20)
Subseqeuent wave of
infections (2H20)
Areas Imposed
VN
Nationwide
(1 - 22 Apr)
(100% of GDP)
Da Nang
(28 Jul – 25 Aug)
(1% of GDP)
ID
Jakarta, wets Java,
Gorontalo and West
Sumatra
(Apr to early Jun)
(33% of GDP)
Jakarta
(14 Sep to 11 Oct)
(18% of GDP)
MY
Nationwide
(18 Mar - 3 May)
(100% of GDP)
Varying timeframes for different
states (mid-Dec: 50% of GDP;
mid-Nov: 84%, mid-Oct; 50%)
PH
Nationwide
(16 Mar - 31 May)
(100% of GDP)
Manila and adjacent provinces
(4 – 18 Aug)
(45% of GDP)0
6
12
18
24
30
36
42
48
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1st wave: 141 cases
2nd wave: 527 cases
Dec 1, three
new cases in
HCMC, all F1
and F2 were
confirmed
negative
Mobility level pre Covid-19Index
Whilst Retail Sales Across The Region Start to Recover
in 2021, Vietnam Proves Its Leading Position With Early
and Sustainable Growth
Rental Outlook In Vietnam Remains Stable And
Not Experienced A Decrease in Rental Rates
Nominal retail sales change YoY (%)
Solid Retail Leasing Enquiry Growth Expected
16,200
10,718
31,600
67,862
HCMC Hanoi
2020 2021F
+95%
% change in rental rate forecast (YoY) Sqm NLA
+533%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
2020 2021F 2019 - 2021 Cumulative
Clearer Signs Of A Speedy Recovery; Ready For A “New Normal” 1
10
Huge Potential For Further Expansion In Vietnam’s Retail Space
Low and fast growing disposable income per capita compared to neighboring countries, coupled with low
mall NLA, presents an opportunity to enlarge Vietnam’s retail mall space to close the regional gap.
Modern Retail is still at a Nascent Stage… …With the Growing Middle Class Set to Drive
Next Wave of Consumption
Disposable income per capita (US$)
Vietnam’s Disposable Income per Capita is similar to Philippines in
2004 and Thailand in 1990, implying huge growth potential (1)
Source: EIU, Colliers, CBRE Research (Hanoi and HCMC Market Insights 2020)
10
2
Vietnam has a Low Mall NLA compared to Thailand and Philippines(1)
NLA (mm sqm)
Strong supply which validates the market’s potential, backed by
stable rental rate(2)
Note: (1) Includes NLA pipeline 2020-2021 (2) As of 31 Dec 2020
Future Supply (sqm NLA)
Hanoi
HCMC
950 1,018
1,808
2,5542,796
2017 2018 2019 2023 2024
930
2,824
3,5473,818
2004 2019 2023 2024
999
6,2216,902 7,246
1990 2019 2023 2024
Vietnam
Philippines
Thailand
2.5
7.97.3
Hanoi/ HCMC Bangkok Metro Manila
2.9x
3.2x2.9x
Rental rate (USD/sqm/month)
Rent rate (CBD) Rent rate (Non CBD)
-
30.0
60.0
90.0
120.0
150.0
1Q20 2Q20 3Q20 4Q20
-
30.0
60.0
90.0
120.0
150.0
1Q20 2Q20 3Q20 4Q20
1,054 1,054 1,127 1,209
73 82
156
2020 2021F 2022F 2023F
1,049 1,049 1,106 1,220
57114
70
2020 2021F 2022F 2023F
Current Future
11
Source: EIU, Euromonitor, Vietnam Investment Review, Inside Retail Asia, CBRE Vietnam
(1) Includes NLA pipeline 2020-2021 (2) % E-commerce penetration represented by internet retailing over retailing.
Modern Retail Set to Take Off
Vietnam is Starved for Modern Retail Format E-Commerce More Catalyst Than Threat
E-Commerce Penetration(2)
28%
11%9%
4% 5% 4%2%
40%
21%
15%13%
11% 10%
3%
China Indonesia Singapore Philippines Malaysia Thailand Vietnam
2019A 2024E(%)
Vincom Retail Further Consolidates Leadership
Position
Attractiveness of Modern
Retail to Consumers
Attractiveness of Modern
Retail to Tenants
Modern Retail Format an Attractive Solution in Vietnam
Significantly Underpenetrated Modern Non-Discretionary Retail Remains
Malls: A Key
Activity Hub
Providing the
Infrastructure
Vincom Retail’s Disruption Has Already Leapfrogged the “Department Store” Phase
Low Penetration
vs Peers
Limited alternatives for
entertainment and social activities
One stop platform for discretionary +
non-discretionary consumption
Significantly higher footfall and sales
psm achieved compared to
unorganized retail
Provides quality control with
guaranteed infrastructure and logistics
that helps to build brand equity
Stand-alone Department Store Formats have Lost Out
Lotte Vietnam on losing streak
since operations began
…However, during its ten years of
operation in Vietnam, Lotte Mart has
never closed a year with profit…
Parkson Vietnam shutters store
…Parkson Vietnam has closed another
of its stores as it continues to struggle
to make its business profitable…
2
Digital
transformation
2020/21(1) NLA per capita (sqm)
Leading the service quality and customer experience
Destination for and a trustworthy partner of major international brands to be
present in Vietnam for the first time
Progressively applying digital transformation to enhance customers’
experience via improved service quality
Close and flexible connection between retail malls and e-commerce to support
shoppers and tenants via a network of credible e-commerce partners
Utilize the readily available customer base from VinID
0.1 0.2
0.5 0.5 0.5 0.5
1.1
1.4
1.8
HCMC Hanoi Beijing Jakarta Shanghai Manila Singapore Bangkok KualaLumpur
1212
Only Retail Platform With Nationwide Access
Portfolio Leasing Creates Significant Bargaining Power… … and Ability to Attract Best-in-Class Tenant Portfolio, with
more than 1,000 Unique Tenants(1)
Source: Company information as of 31 Dec 2020
(1) Non-controlling interest in a subsidiary of Masan Group which owns MasanConsumerHoldings, the largest manufacturer of consumer products by revenue, and VinCommerce, the largest consumer retail network in terms of number of grocery retail stores
2
CAN
THO
DONG
NAI
HCMC
DA
NANG
HANOI HAI
PHONG
VRE’s dominant position and nationwide scale makes it Vietnam’s “Go-to” platform
for international and established local brands
Vietnam
Fa
sh
ion
& B
ea
uty
F&
B a
nd
En
tert
ain
me
nt
An
ch
or (1)
First stores in
Vietnam for Zara,
H&M
First stores in
Hanoi for Uniqlo
First store in retail
malls of Decathlon
• 80 malls across 43
cities and
provinces(1)
• 4 retail formats for
specific areas
• Proven and
scalable retail
development
platform
13
Metro And Bus Infrastructure To Accelerate Retail Mall Footfall
Under Construction Planned LinesMetro Lines
With urban metro lines opening for the first time in Ho Chi Minh
City and Hanoi and extra coverage of VinBus routes, the shift
from street retail to organized retail (malls) will accelerateVingroup’s mixed use and VRE’s mall models are suited to tap
on this trend, given their targeted positioning and proximity to
the stations
2
Most of VRE malls are covered by the upcoming metro lines in Ho Chi Minh City and Hanoi, and major VRE megamalls such as
VMM Ocean Park, Smart City and Grand Park have extra cover of VinBus routes – significant boost in connectivity and footfall
expected
3
1
1
8
2
4
5
CBD
Van Dien
Ha Dong
District
Long Bien
Distirct
Tay Ho
District
Hoang Mai
District
Trau Quy
Hung Yen
Province
Hanoi
VINCOM MEGA MALLROYAL CITY
1
2
3
CBD
4
5
Ho Chi Minh CityDistrict 9
District 1
Go Vap District
District 2
Tan Phu District
District 10
VINCOM CENTER BA TRIEU
VINCOM CENTERTRAN DUY HUNG
VINCOM CENTER PHAM NGOC THACH
Ho Chi Minh
City Airport
Preliminary VinBus routes as of 31 Dec 2020 (*)
1 Grand Park - Emart 2 Grand Park – Tan Son Nhat airport
3 Grand Park – Sai Gon bus station 4 Grand Park- Mien Dong bus station
6 Hao Nam – Ocean Park 7 My Dinh – Ocean Park 8 Ham Nghi – Ocean Park
9 Interconnected Complex – Ocean Park
1 Long Bien – Tran Phu – Smart City 2 Long Bien – Cau Giay – Smart City 3 Giap Bat – Smart City
4 Ho Tay water park – Smart City 5 VCP Long Bien – Smart City
Noi Bai – Ocean Park
Mien Dong bus station – National University NUA5
10
Bus routes
1 2 3 4
1 2 3 4 5
6 7 8 9 10
VINCOM PLAZA SAIGON RES
VINCOM MEGA MALLTHAO DIEN
VINCOM MEGA MALLGRAND PARK
VINCOM PLAZA3/2
VINCOM CENTERNGUYEN CHI THANH
VINCOM MEGA MALLSMART CITY
VINCOM CENTER DONG KHOI
VINCOM MEGA MALLOCEAN PARKVINCOM MEGA MALL
TIMES CITY
Note: (*) Business plan which is subject to change
1414
Multi Format Model Covers A Larger Market Opportunity
Annual Income
Distribution
(% of population
in Vietnam)(1)
Target Segment:
City Center/
CBD consumers
Middle & upper
middle income
Target Segment:
Integrated
development
catchment area
Targets families
across all
income segments
* Focus on shopping –
experience based
shopping to enhance
customer experience
Target Segment:
Heart of provincial
town plus urban
non-CBD
consumers of
key cities
Family &
activity hub
Middle income
Target Segment:
Regional &
non-CBD
catchment areas
Mass to
middle income
Lotte
Target
Segment:
Upper middle
income
Holistic Segment Coverage Across Formats Competitors
Vincom Center Vincom Mega Mall Vincom Plaza Vincom+
AEON
Target
Segment:
Middle
income /
Upper middle
income
Vincom Retail has access
to addressable market
segment of over US$176bn
of retail revenue
Affluent
(6%)
Mass
(21%)
Aspiring
(17%)
Emerging
(32%)
Middle
Income
(24%)
Source: BCG population and wealth models
(1) MAC (Middle income and affluent customers)
3
BIG C GO
Target
Segment:
Mass to
middle income
15
Unique Multi-Format Retail Model
Vincom CenterLocation: City-center, CBD
Retail GFA: 40,000 –
60,000 sqm
No. of Malls: 7
Total GFA: 280,026 sqm
Vincom Mega MallLocation: In integrated,
mixed-use projects
Retail GFA: 60,000 –
150,000+ sqm
No. of Malls: 3
Total GFA: 444,098 sqm
Vincom PlazaLocation: High-density,
CDB of cities
ex. Hanoi and HCMC
Retail GFA: 10,000 –
40,000 sqm
No. of Malls: 54
Total GFA: 857,517 sqm
Vincom+Location: Medium-density,
non-CBD
Retail GFA: 3,000 – 5,000
sqm
No. of Malls: 15
Total GFA: 71,936 sqm
(Segmentation by GFA)
Key Cities
43Cities/
Provinces
80Operational
Malls
~1.7mmRetail GFA
(sqm)
Distinguished retail formats and focused on wide range of lifestyle oriented consumers
Prime Urban and High Growth Areas in Key Cities
Note: As at 31 December 2020
4 retail mall formats
Proven and scalable retail
development platform
25.5%
51.7%
4.1%
18.7%
Hanoi
11 Vincom Malls
5 Vincom Centers
3 Vincom Mega Malls
3 Vincom Plazas
Ho Chi Minh City
13 Vincom Malls
2 Vincom Center
1 Vincom Mega Mall
7 Vincom Plazas
3 Vincom+
North Vietnam (ex. Hanoi)
19 Vincom Malls
16 Vincom Plazas
3 Vincom+
Central Vietnam
20 Vincom Malls
13 Vincom Plazas
7 Vincom+
South Vietnam (ex. HCMC)
17 Vincom Malls
15 Vincom Plazas
2 Vincom+
3 Solidified Position As Dominant Retail Platform In Vietnam
1616
Ability To Leverage The Best-in-Country Vingroup Ecosystem
Largest Loyalty Programme in
Vietnam Reinforces
Captive Spending
Integrated Developments Provide
Mega Malls with Natural Catchment
Access to Landbank from
Vietnam’s Biggest Developer
c.30 years
worth for
development
pipeline for
Vinhomes
Unparalleled
land sourcing
expertise
Vinhomes’s Landbank Breakdown
mn sqm
Single card,
nationwide access
Benefits lock in
repeat spending
Guaranteed
Footfall for
Malls
Market Leading Retail Brands Form
Immediate Tenant Foundations
Accelerates concept
to completion
Drives consumer
footfall
c.168mm sqm of
Landbank(1)
Up to
100,000Residents(2)
28% NLA leased to
internal and
affiliated tenants(2)
11m Members(2)
Note:
1. Refers to Vinhomes’ landbank
2. As of 31 December 2020
3. Non-controlling interest in a subsidiary of Masan Group which owns MasanConsumerHoldings, the largest manufacturer of consumer products by revenue, and VinCommerce,
the largest consumer retail network in terms of number of grocery retail stores
13
155
Launched Pipeline projects
Times City
(opened: 4Q2013)
Ocean Park
(opened 12.2020)
4
(3)
17
Institutional Level Corporate Governance
Conflict Area Description Control
Decision Making• Vingroup will continue to be VRE’s majority
shareholder following the Offering
• All transactions must be entered into on commercially reasonable
basis as a statutory requirement.
• Significant related party transactions must be approved by the Board
of Directors or the general meeting of shareholders
• Interested parties must abstain from voting
Competition• Both Vingroup and VRE are in the business of property
development
• Non-compete from Vingroup on retail; VRE has a clear Right of First
Refusal (“ROFR”) for all stand-alone retail projects, retail
components and select mixed-use projects with well-defined criteria
Land Bank Access • Vingroup holds much larger land bank than VRE
• The ROFR above gives VRE economies of scale in land sourcing,
and delaying early-stage development costs
• VRE has ROFR on land that can be used for retail, at cost
• VRE has an independent land sourcing team and primarily focuses
on different types of projects than Vingroup
Related Party Tenants • VRE has related party-tenants (Vingroup entities)
• Allows VRE to expand faster with the key anchor tenants in place in
advance of commencing construction
• Leases are negotiated on an arms’ length commercial terms
• Governed by related party rules under “Decision Making”
Management Services
Contracts
• VRE has contracts with Vingroup entities such as
Vinpearl and Vinmec for non-core services such as
lodging rental and periodic health check for
employees, and Vingroup for headquarters services
such as marketing, treasury and corporate HR
• Fees are calculated based on comparable third-party service
providers and Vingroup fees are allocated based on number of man
hours and assets under management
• Helps VRE to manage expansion with minimum overhead as it can
share resources and costs with the rest of Vingroup
• Governed by related party rules17
5
4Q2020 Key Highlights
19
998930
1,174 1,178
(6.3%)
0.3%
VNDbn
1Q20 2Q20 3Q20
Leasing NOI
86.1% 81.1% 91.3%
(1)
% of 2019 level
All key financial figures continued remarkable momentum from the 3rd quarter
1,686 1,4491,6301,307
1,760 1,608
3,253
1,645
(3.3%)84.8%
(9.8%) 2.3%
VNDbn
1Q20 2Q20 3Q20 1Q20 2Q20 3Q20
Total Revenue Leasing Revenue
VNDbn
73.8% 82.2% 79.7% 90.6% 78.8% 88.9%
% of 2019 level % of 2019 level
759
646
845
(14.9%) 86.1%
1,572
VNDbn
1Q20 2Q20 3Q20
Gross Profit
78.1% 67.3% 78.4%
% of 2019 level
1,068
910
1,218
1,746
(14.8%) 43.3%
VNDbn
1Q20 2Q20 3Q20
EBITDA
88.9% 73.1% 94.0%
% of 2019 level
4Q20 4Q20
4Q204Q204Q20
112.7% 110.5%86.5%
Note: Based on VAS Consolidated Quarterly Financial Statements
These financial metrics already took into account the impact of the rental support (VND300bn in 1Q, VND375bn in 2Q, VND145bn in 3Q and VND46bn in 4Q)
(1) NOI for leasing investment properties and rendering of related services is calculated by taking total income from leasing activities and from other property-related services less any property-related operating expenses
which include land lease costs but exclude management expenses allocated from parent company
116.8% 84.3%
Decline 2Q vs. 1Q
Growth 4Q vs. 3Q
Financial Performance – 4Q2020
20
Retail GFA Occupancy rate
(‘000 sqm) 2019 2020Change
(%)
Vincom Center 280 280 -
Vincom Mega Mall 388 444 14.4
Vincom Plaza 858 858 -
Vincom+ 72 72 -
Total 1,598 1,654 3.5
2019 2020Change
(ppts)
Vincom Center 91.3% 92.7% 1.4
Vincom Mega Mall 91.7% 86.8% 4.9
Vincom Plaza 88.7% 81.5% 7.2
Vincom+ 84.9% 75.2% 9.7
Total 89.8% 84.4% 5.4
Note: As of 31 December 2020
Key Operational Metrics
21
1 Footfall
2 Tenants’ sales in 2020
3
(2)
Note: As at 31 December 2020; Company information
(1)(1) (2)
-
1
2
3
4
5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Hanoi (2020)
-
1
2
3
4
5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HCMC (2020)Million Million
Overall, footfall has positively recovered. Hanoi malls saw strong footfall recovery thanks to upgraded VCC Metropolis, VCC Pham Ngoc Thach with more
international famous brands driving footfall
Newly opened VMM Ocean Park in December was well received
HCMC malls witnessed weaker recovery than in Hanoi due to travel restriction impact, which lead to fewer foreign tourists
Tenants’ Recovery Post Covid-19
F&B Entertainment CinemaFashion
COVID-19 relative impact
Recovery status
Strong recovery
witnessed across
Hanoi and HCMC
Strong recovery
witnessed across
Hanoi and HCMC
Gradual recovery
witnessed across
Hanoi and HCMC
Gradual recovery
witnessed across
Hanoi and HCMC
Least
impacted
Least
impacted
Medium
impacted
Most
impacted
Resumption of business activities & improved tenant sales resulted in less tenant support in 4Q2020. Total support package of 2020
was VND865bn (vs. VND 820bn in 9M2020).
22
Occupancy rate: 93%
(including committed tenants)
VCC LANDMARK 81 VCC METROPOLIS VCC TRAN DUY HUNGVCC PHAM NGOC THACH
Key tenants
Chain tenants expansion
15%Area
New tenants
of total tenants%11Number of new tenants Accounting for
114
New mall opening – Vincom Mega Mall Ocean Park
Upgrading Operating Malls
Leasing Plan and Tenant Growth Achievement
On 17 December 2020, Vincom Retail was
honored among the top 10 leading brands
in Vietnam 2020 by Forbes Vietnam
Business Highlights In 4Q And 2020
23
Marketing Activities That Drive Footfall And Tenant Sales
Vietnamese Women’s Day
(20 Oct 2020)
Radiant flowers - Happy
fragrance
Black Friday, Christmas
(23 Nov 2020 – 15 Jan 2021)
Welcome festival - Warm
and full of love
Opening Day
(11 Dec 2020)
Christmas Festival in
the Ocean City
(19 December 2020)
Marketing Campaigns Grand Opening of VMM Ocean Park
The first event ever held at Vincom -
Discover Vincom with beautiful men
Footfall: ~4mn (visits)
Tenant sales: ~VND 548bn
Activities focus on decoration, cheerful
events with up to 70% discount
Presence of famous singers and
Christmas Music Night
Footfall: ~6mn (visits)
Tenant sales: VND 823bn
Music performance event with the
participation of singer Noo Phuoc Thinh
Bus Tour & Roadshow, in cooperation
with VinFast, transported internal
customers and Vinhomes residents to
Vincom
Footfall: ~76.2 thousands (visits)
Tenant sales: ~VND 20bn
The first Christmas night in the Ocean
City with a music performance
featuring famous singers
Light and fireworks show – first time at
Ocean Park urban area
Light up the tallest Christmas tree in
Hanoi
Roadshow, in cooperation with
VinFast, transported Vinhomes
residents
Guide customers to prevent disease at Vincom malls including wearing mask before entering the shopping mall or participating in entertainment activities
Hourly disinfection with hand sanitizer when entering and leaving shopping mall
Viral marketing on Fan pages of the 80 shopping malls and on company website
Promoting disease prevention and safety measures at Vincom malls
2021 Strategy Plan
25
Customer
Services
Continue to develop Vincom Center (VCC)/Vincom Mega Mall
(VMM)/Vincom Plaza (VCP) in the big and Tier-1 cities to offer a dynamic
and engaging experience to the residential community in Vinhomes’
mega projects and surrounding areas
Enhance customer experience, embrace digital technologies, and
ascertain the number one destination for customers by expanding and
diversifying tenants’ portfolio with international and Vietnamese brands
Product
Strategy
Marketing
Strategy
Tenant
Strategy
2021 Strategies And Plan
Expand the group of international, large, chain and anchor tenants
(Fashion, F&B, Furniture, Home accessories, Supermarket, etc.) in
existing shopping malls
Pioneer in reaching and bringing international, prestigious brands
and attractive retail models to Vietnam for the first time
Accompany and support Vietnamese tenant groups
Solidify Vincom Retail’s leading position for effective cooperation and
consumers’ trust
Expand channels for brand communication: Web/App
Provide a safe shopping environment with quality products and services
Optimize operating costs and energy costs
5 new shopping malls
New malls’ occupancy target: VMM 85%,
VCP and VC+ 95% (including committed
tenants)
Upgrade VCP Da Nang to VCC
Upgrade tenant mix at VCC Metropolis
(Hanoi), VCP Phan Van Tri (HCMC), VCP
Hung Vuong (Can Tho)
Digital
Transform-
ation Apply digital transformation initiatives to create a dynamic, engaging
customer experience and maximize operational efficiency
Roll out Tenant Portal
Build data warehouse system
Enhance Vincom web/ Vincom app to
facilitate customer experience to and at
Vincom malls
Implement marketing and communication
plans for the grand openings of major
projects namely Grand World, Vincom
Mega Mall Smart City, and Vincom Mega
Mall Grand Park
Enhance a quality service program to offer
impressive shopping experience for the
continuously increasing end-users and
customers
26
Leading shopping mallswith presence across Vietnam
Shopping malls of VietnamesePioneer in bringing shopping experiences from
prestigious domestic and international brands
New opening
Chain and
anchor
tenants
development
5 projects, including 2 Vincom Mega Mall 2 Vincom Plaza 1Vincom+
150,000 sqm GFA ~1.8mn sqmIncrease nationwide
retail GFA to
Number of stores
20%
Area
20%
Target tenants for finalizing
Upgrade
tenant mix 3 projects, including 1 Vincom Center 2 Vincom Plaza
Sale Goals And Action Plan
Goals
Action Plan
Financial Update
28
Figures in VND billion 4Q2019 4Q2020 YoY (%) Commentary QoQ (%) Commentary
Leasing of Investment
Properties and Rendering of
Related Services1,951 1,645 15.7
An additional VND45.6 billion
(US$1.9 million) tenant support
package was granted
Revenues from advertising,
utilities and car-parking was also
lower due to the social distancing
period, and overall Covid-19
impact
2.3
Sale of Inventory Properties 785 1,547 97.1
Two major projects (My Tho and
Bac Lieu) were handed-over in
4Q2020
1,347.7
Two major projects (My Tho
and Bac Lieu) were handed-
over in 4Q2020
Other revenue 48 61 27.4 33.5
Total Revenue 2,784 3,253 16.8 84.8
Gross Profit(1) 1,395 1,572 12.7 86.1
Operating Profit / (Loss) 1,096 1,186 8.2 76.3
Profit / (Loss) before Tax 1,109 1,211 9.2 69.0
Profit / (Loss) after Tax for the
Period884 975 10.3 70.3
Profit / (Loss) after Tax and
Minority Interest883 974 10.3 70.3
Note: VAS Consolidated Quarterly Financial Statements
(1) Gross profit already subtracted D&A relating to investment properties accounted for under VAS
Financial Performance In 4Q2020 vs 4Q2019
29
Figures in VND billion 2019 2020 Change (%) Commentary
Leasing of Investment Properties
and Rendering of Related
Services7,017 6,008 14.4
In 2020, the Company disbursed VND865 billion to support tenants
affected by the Covid-19 pandemic
Sale of Inventory Properties 2,027 2,149 6.0
Other revenue 215 172 20.0 Entertainment business and operation of Condotel Da Nang were
heavily impacted by Covid-19
Total Revenue 9,259 8,329 10.0
Gross Profit(1) 4,404 3,821 13.2
Operating Profit / (Loss) 3,546 2,901 18.2
Profit / (Loss) before Tax 3,576 2,993 16.3
Profit / (Loss) after Tax for the
Period2,852 2,382 16.5
Profit / (Loss) after Tax and
Minority Interest2,851 2,382 16.5
Financial Performance In 2020 vs 2019
Note: VAS Consolidated Quarterly Financial Statements
(1) Gross profit already subtracted D&A relating to investment properties accounted for under VAS
30
3,0893,829
4,9554,280
998 930 1,174 1,178
2017 2018 2019 2020 1Q20 2Q20 3Q20 4Q20
2.3422.882
3.7522.951
668 587 838 858
411
806
735
1,034
135 110 49
740
48
(47)
(84)(164)
(44) (52) (41)
(27)
2,801
3,641
4,404 3,821
759 646 845 1,572
2017 2018 2019 2020 1Q20 2Q20 3Q20 4Q20
Leasing of Investment Properties Sale of Inventory Properties Other Revenue
39.6% 48.0% 48.3%
4,4555,506
7,0176,008
1,449 1,307 1,608 1,645
951
3,4332,027
2,149
201 294 1071,547
112
185 215172
3629
4661
5,518
9,124 9,2598,329
1,6861,630
1,760 3,253
2017 2018 2019 2020 1Q20 2Q20 3Q20 4Q20
Leasing of Investment Properties Sale of Inventory Properties Other Revenue
Note: Based on VAS Audited Consolidated Financial Statements for respective years and VAS Consolidated Quarterly Financial Statements of 2020
(1) Depreciation and amortization relating to investment properties is below the graph and should be added back (to Gross Profit) under IFRS. Since 2018, “Other” segment includes results from management of Da Nang condotels which was incurring loss as the property
was still ramping up after launch in May 2018.
(2) NOI for leasing investment properties and rendering of related services is calculated by taking total income from leasing activities and from other property-related services less any property-related operating expenses which include land lease costs but exclude
management expenses allocated from parent company.
VNDbn
Total Revenue Gross Profit
VNDbn
50.8% 39.9% 47.6%
Gross Profit Margin (%)
Leasing Net Operating Income (NOI) Profit After Tax and Minority Interest
VNDbn VNDbn
Leasing NOI Margin (%)
69.3% 69.5% 70.6%
(2)
(1)
45.0%
69.2% 73.2% 71.9%
Depreciation & amortization of investment properties (VNDbn)
45.9%
829 1.042 1.331 1.359 338339 335 346
1,905
2,404
2,851
2,382
492 343 572974
2017 2018 2019 2020 1Q20 2Q20 3Q20 4Q20
71.0%71.3%
Financial Performance
31
VNDbn
Total Assets Total Borrowings, Cash and Cash Equivalents
Total Equity (Net Debt / (Net Cash))(3) / Equity
VNDbn
VNDbn VNDbn
21,481 27,773 28,718 28,558
16,652 10,911 7,121
11,212
38,133 38,684 35,839
39,769
31-Dec-17 31-Dec-18 31-Dec-19 31-Dec-20
Investment Properties and Investment Properties Under Construction Other Assets
5,974
2,780 2,785
5,726
4,095
3,133
2,177
4,945
31-Dec-17 31-Dec-18 31-Dec-19 31-Dec-20
Total Borrowings Cash and Cash Equivalents
26,094 28,509
26,954 29,336
31-Dec-17 31-Dec-18 31-Dec-19 31-Dec-20
7.2%
Net cash
2.3% 2.7%
31-Dec-17 31-Dec-18 31-Dec-19 31-Dec-20
(2)(2)
(2)
(2)
(1)
Note: Based on VAS Audited Consolidated Financial Statements for respective years and VAS Consolidated Financial Statements for 4Q2020
(1) Investment Properties and Investment Properties Under Construction (IP/IPUC) are valued at development cost minus depreciation and amortization and are not fair valued
(2) Decline in other assets, cash and cash equivalents, total equity as well as increase in gearing ratio as of 31 December 2019 was due to the payment of cash dividends of VND 2,445bn in April 2019 and buy back 56.5 mil
treasury shares completed in November 2019
(3) Net Debt / (Cash) = (Short-term Borrowings + Long-term Borrowings) – (Cash & Cash Equivalents + ST Investments).
Balance Sheet
Appendix
33
Bridging VAS To IFRS
Unit: VND Billion
VAS
2020
Adj. IFRS
2020
Commentary on Adjustments
Leasing revenue and other related
services6,008 51 6,059
Realized unearned revenue of deposit from customer in relation
to amortization of deposit
Sale of inventory properties 2,149 2,149
Other revenue 172 172
Total revenue 8,329 51 8,380
Cost of leasing activities and other
related services(3,057) 1,283 (1,774)
Mostly depreciation of malls included in VAS; excluded under
IFRS
Cost of inventory properties sold (1,115) (1,115)
Others (336) (336)
Cost of goods & services (4,508) 1,283 (3,225)
Gross profit 3,821 1,334 5,155
Gain/loss from recording FV of IP/IPUC 1,204 1,204Fair valuations of the investment properties and investment
properties under construction (“IP/IPUCs”) are based on valuation
reports by independent valuers as of 30 June 2020
Selling expenses (330) (330)
General and administrative expenses (399) 73 (326) Amortization of Goodwill included in VAS; excluded under IFRS
Other income 124 124
Other expense (32) (32)
Finance expense (467) (108) (575) Amortization of deposit from customer
Finance income 276 65 341 Revert capitalized interest income to IPUC
Profit before tax 2,993 2,567 5,560
Tax expense (610) (241) (851) Mainly deferred tax arising from fair value adjustment of IP/IPUC
Profit after tax 2,382 2,326 4,709
34
Source: Vietnam Ministry of Health; Company information
As of 31 December 2020
0
100
200
300
400
500
600
700
800
900
0
6
12
18
24
30
36
42
48
Community cases (LHS) Vincom Retail Footfall (RHS)
(‘000)
26 Jul: First
community case in
Da Nang after 99
days of no new
cases in Vietnam
Only 3 community
cases since 3 Sep.
All F1 and F2 were
confirmed negative
VCP Buon Me Thuot
closed for 2 weeks
from 3 to 17 Aug
VCP Da Nang closed
for 5 weeks from 28
Jul to 5 Sep
1st wave of Covid-19 (5 Mar – 30 Apr)2st wave of Covid-19 (28 Jul – 20 Sep)
Vietnam Swiftly Contained Covid-19
Investor Relations Department
Vincom Retail JSC
7 Bang Lang 1, Vinhomes Riverside, Viet Hung Ward
Long Bien District, Hanoi, Vietnam
Tel: +84 (24) 3974 9999 ext. 9545
Fax: +84 (24) 3974 8888
Website: ir.vincom.com.vn/en
E-mail: [email protected]